globalisation from book Flashcards
what is globalistaion
the process where a place becomes more interconnected and interdepent through people, culture, FINANCE, goods and information transfer between countries with few barriers
types of global flows?
commodities, people, information, culture, services
what are the 5 types of globalisation
economic, social, cultural, political, environmental
what are the 3 igos
IMF, the world bank, WTO
What do the igos do
distribute wealth,( IMF make countries follow SAPs (structural adjustment programmes (rules)) which allows for TNCs to enter.
what is time space compression and what causes it
the idea that places feel closer and take less time to reach: caused by heightened connectivity
what is the shrinking world effect
places feel closer together as travel time shortens
what is containerisation
standardised transport that uses steel containers- they can easily be transferred between different modes of transport
what are fibre optics
technology associated with transfer of information, across earths ocean floor
what are the two main reasons why IGOS arose
to help globalisation by increasing FDI and free trade
delete
deletea manufacturing philiosphy that aims to achieve higher productivity (mass production)
what are SAPS
economic policies for developing countries promoted by world bank and IMF
ignore Foreign mergers
two firms in diff countries join to create a single entity
ignore foreign acquisitions
when a TNC takeovers a company in another country.
ignore transfer pricing
some TNCs get profits through a company in low tax countries
what are the 4 ways governments can influence the following aspects of their economy
- promoting trade blocs
- free market liberalisation ( lifting restrictions on the way companies and banks operate)
- encouraging business start ups and TNCs
- privatisation
what are trade blocks
a collection of countires that group together to promote free trade between them
what are the 3 trade bocks
ASEAN
EU - allows for free movemrnt of people
NAFTA
what did chinas SEZs do?
businesses can import raw materials, processes, manufacture and re-export them paying reduced tax
(reduced taxes for trade)
what 3 areas that the KOF index measures
economic, social(largest weighting - most important factor), political.
what does the AT Kearny index measure
economic integration, political engagement, personal contact, technological connectivity
what are TNCs
companies which operate in more than 1 country
what is OUTSOURCING
when some of the business is contracted out to be done by another company ( often abroad) rather than within the country
what is OFFSHORING
when a company moves part of its own operations to another country
what is glocalisation
the way that companies adapt products to meet local tastes, traditions or laws (towards a diferent audience in a diff country)
give examples
switched on?
factors that increase a places connectivity
switched off?
factors that decrease a places connectivity
what is privatisation
Privatization is where government-owned businesses or infrastructure is sold to private TNCs. It allows foreign investors to gain a share and so can represent a form of FDI.
examples of being switched on
-access to electricity
- FDI
- investments from TNCs
- transport links
examples of being switched off
-low population
-geographically isolated
- corruption in government
-dictatorship
Disneyfication- how does Disney operate around the world
-owns 40 Spanish speaking radio stations
-merchandise is produced overseas
Disneyfication- how has Disney glocalised - examples
- Aladdin was aimed at Asian markets and so was mulan.
-The lion king was aimed at african markets
-reaching out to cultures
Disneyfication- why does disney have a large influence around the world
- global governments pay billions to disney to have Disney lands.
what are the main factors that have accelerated globalisation
-IGOS
-transport technology: containerisation, aircraft
-ICT technology: fibre optics/internet, computers/internet, mobile communication
-National governments: china and the UK
-trade blocs: EU, NAFTA, ASEAN
NATIONAL GOVERNMENTS: how has the UK sped up globalisation
-open to global flows
-subsidies(payments goverment to make it more competitive or prevent collapse) encourage inwards FDI to the UK
NATIONAL GOVERNMENTS: how has china sped up globalisation
-china declared an open door policy-welocmed fdi
- has 4 sezs (imports and exports at a reduced tax)
-economic zones= huge pools of cheap labour attracting TNCs
what are the types of ICT technology that accelerate globalisation
-computers/internet (easy access to info)
-fibre optics (flows of info however could be blocked out by the gov)
-mobile communication (skype- connect people across the globe-culture spread with ease)
=all can be blocked out by gov
what are the types of transport technology that accelerate globalisation
-containerisation
-aircraft ( time space compression)
how does the trade bloc ‘the EU’ accelerate globalisation
-aims to create a single common market for goods
-removing barriers
freemoevemt of people
however it does favour large countries
how does the trade bloc ‘ASEAN’ accelerate globalisation
-supports local trade and facilitates economic integration
however prioritizes national over regional interests
how does the trade bloc ‘NAFTA’ accelerate globalisation
-reduces barriers to trade, boosted economic growth= accelerated globalisation
however wages have been supressed
why is measuring globalisation difficult
-time consuming
- expensive to measure it
-gov data may not be accurate
-data is constantly changing
-some govs censor info
what were the developments in transport and trade in the 19th century
-railways
-telegraph (replaced boat journeys that could take weeks)
-steamships which replaced sailing ships
what were the developments in transport and trade in the 20th century
jet aircarft
containersation
what were the developments in ICT and global communication in the 21st century
-mobile phones
-internet
-fibre optics
-social networks
-electronic banking
has led to time space compression
whata re the 4 ways tncs promote globalisation
- glocalisation
- offshoring and outsorcing
- promoting western culture
- ## flow of people to areas for jobs
stat
state facts about fdi
the uk revieced 12 b of fdi from the usa when krfat foods bought caburys in 2010
fdi will gaurnetee 6700 jobs
how does national govs(EU) encourgae fdi?
ignire
influx of capital can boost economic growth.
fdi leads to improvemnets in infrastructure
greater competition from new companies can lead to productivity gains and greater efficiency
hat do sezs provide
- employments fro local s
- technology transfer
how has china attracted do much fid since 1978
open door policy
sezs
emerging markey
good infrasture
politically stable
cheap skilled labour
cheap goods
state things about chian open door policy and history
OPD, sezs, 2001,2013,2016
open door policy=1978
ODP needed western tech to devlop its economy.
gov welcomed forign buiesses setting up in china
4 sezs=1980- attract capital and buisness
became member of world trade in 2001
chuna iver took usa as worlds biggest trading in goods nation 2013
slowdown in economy in 2016
china is a major of inward and outward flow of fdi, Brics involved.
why is glob unequal
trasnport
transport and communications are focused in core areas- increasing people and businesses to invest in core regions, straving perphiray areas.
